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## calculate the overheads allocated to production departments a and b from the followi 559072

Calculate the overheads allocated to production departments A and B from the following: There are two service departments X and Y. X renders service to A and B in the ratio 3:2 and Y renders service to A and B in the ratio 9:1. Overhead as per primary overhead distribution is A—Rs 49,800; B—Rs 29,600; X—Rs 15,600; Y—Rs 10,800.

 Production departments Service departments A B C X Y Direct wages (Rs) 7,000 6,000 5,000 1,000 1,000 Direct materials (Rs) 3,000 2,500 2,000 1,500 1,000 Employees (number) 200 150 150 50 50 Electricity (units) 8,000 6,000 6,000 2,000 3,000 Light points (number) 10 15 15 Asset value (Rs) 50,000 30,000 20,000 10,000 10,000 Area occupied (square yards) 800 600 600 200 200

The expenses (in rupees) for the month were as follows:

 Stores overheads (Rs) 400 Motive power (Rs) 1,500 Lighting (Rs) 200 Labour welfare (Rs) 3,000 Depreciation (Rs) 6,000 Repairs and maintenance (Rs) 1,200 General overheads (Rs) 1,000 Rent and rates (Rs) 600

Apportion the expenses of X in the ratio 4:3:3 and those of department Y in the proportion of direct wages to departments A, B and C, respectively.

 Total — 18,400 5,190 3,520 2,850 3,650 3,190 Department X4:3:3 — — 1,460 1,095 1,095 ( 3,650) — Department Y76:5 — — 1,241 1,063 886 — ( 3,190) 18,400 7,891 5,678 4,831